Stimulus Measures on the Horizon Amid China's Economic Woes

China's economy grew 4.6% year-on-year in Q3, slightly exceeding expectations but reflecting continued weakness in the property sector and domestic consumption. Authorities are implementing stimulus measures to meet growth targets, with analysts anticipating further rate cuts and increased fiscal support.

China's economic growth in the third quarter surpassed forecasts, registering a 4.6% year-on-year increase, yet persistent property sector struggles and subdued consumer spending continue to strain the nation's economic landscape. Such conditions pose challenges for policymakers pondering further stimulus measures to invigorate the economy.

Friday's data reveal industrial output and retail sales in September exceeded expectations, offering hope to policymakers. However, the property sector remains a significant area of concern, urging financial markets to demand additional supportive measures to revitalize this critical part of the economy.

The government has escalated stimulus efforts, aiming to reach a 5% growth target for 2024. Nevertheless, deflationary risks linger, exacerbated by weakening export growth. Amid these challenges, China is expected to further augment fiscal stimulus, potentially through extensive debt issuance, to bolster economic stability and growth prospects.

(With inputs from agencies.)